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Liquidity management and corporate demand for hedgingand insurance

Description : We analyze the demand for hedging and insurance by a firm facingcash-flow risks. We study how the firm’s liquidity managementpolicy interacts with two types of risk: a Brownian risk that canbe hedged through a financial derivative, and a Poisson risk thatcan be insured by an insurance contract. We f...
Language(s) : English
Subject(s) : Department of Banking and Finance , 330 Economics
Publisher(s) : Elsevier
Contributor(s) :
Source(s) : Rochet, Jean-Charles; Villeneuve, Stéphane (2011). Liquidity management and corporate demand for hedgingand insurance. Journal of Financial Intermediation, 20(3):303-323.
Publication Date(s) : 2011-01-01